The cash book on 31st December 20X0 has a balance of 3,800. The bank statement on the same date has a balance of 4,000. The difference is most likely as a result of the following:

Multiple Choice

• Cheques for 200 recorded in the cash book, not yet cleared in the bank.

• Direct debit payments of 200 included in the bank statement, not yet in the cash book.

• Receipts of 200 recorded in the cash book, not yet cleared in the bank.

• Bank charges of 200 included in the bank statement, not yet in the cash book.